Activist investor Dan Loeb's Third Point LLC slashed its stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) by 23% in the third quarter of 2025.
Over the past few quarters, Loeb has been reducing his stake in the company.
According to a recent 13F filing, reflecting his holdings as of Sept. 30, 2025, Third Point lowered its stake to 1.10 million shares from 1.43 million in the second quarter of 2025 and 1.78 million shares in the first quarter of 2025.
Political Tension Looms
Recently, the Trump administration signaled a tough stance on Chinese semiconductors while delaying actual tariffs until 2027.
“China’s targeting of the semiconductor industry for dominance is unreasonable and burdens or restricts U.S. commerce and thus is actionable,” the U.S. Trade Representative said in a statement.
Last month, Taiwan Semiconductor reportedly planned to raise prices for its advanced chips, shrugging off heightened geopolitical tensions as China carried out military drills near the island.
Third-Quarter Earnings Release
In October, Taiwan Semiconductor reported third-quarter net sales of $33.1 billion (989.9 billion New Taiwanese dollars), up 30.3% year-over-year (Y/Y), topping the analyst consensus estimate of $31.5 billion. Net sales grew 6.0% quarter over quarter (Q/Q).
The company guided fourth-quarter 2025 revenue of $32.20 billion to $33.40 billion, versus the $31.97 billion analyst consensus estimate. It expects a gross margin of 59% to 61% and operating profit margins of 49% to 51%.
Also, Taiwan Semiconductor bagged 4.77 billion New Taiwanese dollars in subsidies in the third quarter of 2025. This brings the total support in the first nine months of 2025 to 71.9 billion New Taiwanese dollars.
Moreover, the company raised its third-quarter cash dividend 20% to 6 New Taiwanese dollars (roughly $0.19) per share, up from 5 New Taiwanese dollars in the previous quarter.
Monthly Sales Numbers Suggest Growth
In November, the company reported solid October financial results. The chipmaker posted consolidated net revenue of approximately 367.47 billion New Taiwanese dollars for October 2025, up 16.9% year-over-year and 11.0% from the prior quarter.
In December, the company reported November 2025 net revenue of approximately 343.61 billion New Taiwanese dollars, representing a 24.5% year-over-year (Y/Y) increase. However, the topline declined 6.5% month-over-month.
Analyst View
In October, Taiwan Semiconductor retains its pivotal global significance, supported by the concept of a "silicon shield protecting Taiwan," Dan Nystedt of TriOrient Investments noted in a recent CNBC Squawk Box Asia interview.
Also, Nystedt acknowledged the risk of a "reversal of AI demand or AI hype" but emphasized that Taiwan Semiconductor works closely with customers to gauge real demand and avoid overbuilding capacity.
Commitment to AI
In October, Nvidia Corp introduced the first U.S.-made Blackwell wafer, a crucial component for AI chips, at the Taiwan Semiconductor facility in Phoenix.
Also, Taiwan Semiconductor’s Japan arm, Japan Advanced Semiconductor Manufacturing (JASM), has signed an agreement with the government of Kikuyō Town in Kumamoto Prefecture to build its second wafer fabrication plant for an investment of $13.9 billion.
In November, the company raised prices across its advanced chip manufacturing processes below 5 nanometers to offset the sharp increase in capital expenditures tied to its 2-nanometer technology expansion.
The company also reaffirmed its commitment to expanding its U.S. footprint to support the accelerating demand for artificial intelligence-driven chips.
In December, the company confirmed it had begun volume production of its 2-nanometer chips.
This month, the company surpassed its previous 52-week high as it secured a one-year U.S. export license, allowing it to continue importing U.S. chipmaking equipment for its operations in China.
Stock Comparison
In the last year, TSM shares rose around 52.81% compared to the growth of 26.42% in SP Funds S&P World (ex-US) ETF (NYSE:SPWO) and a decline of 18.44% in YieldMax TSM Option Income Strategy ETF (NYSE:TSMY).
Also, the company’s share growth exceeded its closest peers, NVIDIA and Broadcom Inc. (NASDAQ:AVGO), which grew 35.40% and 51.58%, respectively.
Image created using artificial intelligence via Midjourney.
